How to Find Government Grants & Incentives for Manufacturers

In 2023, incentives for manufacturing projects averaged $75,000 per employee. Don’t miss out on these opportunities! This page details the various grants and tax incentives that are currently available.

Background

For decades states and cities have offered incentives to attract business investment. Starting about 2022 the federal government has provided a broad range of grants, credits and loans via programs such as CHIPS and IRA. Many or most federal departments have control of relevant portions of the funding. Most of the funding is focused on specific product categories such as chips and EV batteries, and other product categories where the U.S. is too dependent on imports, especially from China. Some funding is more flexibly devoted to “green” projects. Some specifically calls for reshoring or onshoring.

We have created an extensive list of known Grants and Tax Incentives for Manufacturers. This downloadable list provides a description of each program, links, contact info, and more.

Insights into federal, state and city incentives

The U.S. government provides huge $’s for chip foundries, EV batteries and several other mission-critical, high-visibility projects. Below are some helpful resources to access these federal, state and private programs.

• Baker Tilly offers the best webinar on how to get funds from the Inflation Reduction Act (IRA) for products such as EV batteries that reduce emissions.

• You can find similar reports from BDO and Forvis.

• The Golden Shovel Economic Developers Guide to Grants study shows grants for economic developments that include workforce and business development. Grants may have to go through economic development agencies.

The U.S. Dept of Commerce’s Economic Development Agency, (EDA) has a Revolving Loan Fund Program that provides Economic Adjustment Assistance grants to eligible recipients to capitalize or recapitalize lending programs that service businesses that cannot otherwise obtain traditional bank financing (and in limited situations to governmental entities for public infrastructure). These loans provide access to capital as gap financing to enable small businesses to grow and generate new employment opportunities with competitive wages and benefits. Financing also helps retain jobs that might otherwise be lost, create wealth, and support minority and women-owned businesses.

The Export-Import Bank of the United States (Ex-Im Bank) announced on April 14, 2022 a “new program to support the construction of manufacturing facilities within the United States” focused on products that can be exported. This action is part of the Biden administration program to encourage reshoring.

The Department of Energy has $50M.

The Manufacturing Extension Partnerships (MEPs) will help OEMs reshore. We have worked with a number of the MEPs.

SelectUSA helps companies that want to do foreign direct investment (FDI) in the U.S. They give good guidance but no $.

Local and state economic development organizations (EDOs) provide incentives.

How the Reshoring Initiative® can help

When evaluating the feasibility of reshoring, call on the Reshoring Initiative for help. We can provide:

• The TCO Estimator that quantifies and compares all costs and risks for the U.S. and offshore sources. The feasibility and ROI on investment in reshoring will be more accurate and more favorable when comparing TCOs rather than comparing prices.

• The Import Substitution Program (ISP) can help you find the current major importers so you can test the market before committing and solicit orders after committing.

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